Client-Focused Representation In Real Estate Matters

Documents you’ll see at your real estate closing

On Behalf of | Nov 2, 2021 | Real Estate Transactions |

The day in which you close on a home can be a bit overwhelming. Homeowners are often unprepared for the sheer quantity of paperwork involved.

Since all of these documents are legally binding, you want to be very cautious. Familiarizing yourself ahead of time with what to expect can help. Here are the documents you can expect:

Lender documents

Most homebuyers secure a mortgage to purchase their homes. You can expect to review and sign off on a Master Promissory Note at your closing, if so. Your promissory note will spell out details about the type of loan you have, how much you’ll be expected to pay, how long it will last and your interest rate. It will also likely detail what will happen if you stop paying.

Another document, the escrow disclosure statement, will detail whether insurance and taxes are included in that monthly mortgage payment (and how that will be handled, if not).

Settlement statement

Your closing agent should forward you a copy of the U.S. Department of Housing and Urban Development Settlement Statement a few days before the closing so that you can review it, request any necessary corrections and secure a cashier’s check for your closing fees. You can expect to be asked to re-review and sign off on this document once again at your closing. 

Transfer of taxes and deeds

You can expect to sign off on both a transfer of deed and tax forms at the closing. The deed of trust form will allow your lender to pursue foreclosure if you stop making payments on your loan. The other document will merely transfer ownership of the property from the former owner to you. The property tax transfer declaration form will let the county know that you’re now responsible for paying taxes instead of the former owner. 

Each closing is unique. Take the time you need to learn more about what to expect at the closing to ensure your rights are protected through the process.